Despite an increase in the city levy, property taxes are going down for most property owners in the city of Ely.
The city’s annual Truth in Taxation hearing, held Dec. 2 at City Hall, resulted in no opposition to or complaints about a levy that will be passed by the city council before the end of the month.
As it currently stands, the city is slated to collect 6.54 percent more in property taxes, or $2,464,000 in 2026.
But even though the city will collect more in property taxes overall, most local property owners will actually pay less in city taxes.
That’s due in part to a $60,112 increase in fiscal disparities funding from the state of Minnesota, which offsets local taxes, as well as a better than 10 percent increase in overall tax capacity in the city.
Taxable market value within the city limits climbed by $21.7 million to $257,774,709.
Tax comparison statements released at the hearing showed the impact of the levy and the various changes.
City property taxes on a $100,000 residential property will dip from $242 this year to $226 in 2026.
The decline is nearly $40 on a $150,000 home, while the owner of a $200,000 home will see their city taxes go from $1,153 to $1,092.
Once county, school and other taxes are factored in, city property owners will see overall declines in property taxes ranging from $49 on a $100,00 home to $143 on a $250,000 home.
Even commercial property owners are set to see some relief in 2026, at least in Ely.
City property taxes remain nearly even, with the owner of a $200,000 commercial property seeing a $9 drop in city taxes and an overall decline of $61 next year.
The city’s property tax levy will be divided among the general fund, library, cemetery, debt service, capital projects, and equipment replacement budgets, with total local taxes collected rising from $2,312,700 this year to $2,464,000 in 2026.
Out of a general fund budget of $4,493,100 set for next year, only 18 percent ($819,200) comes from property taxes while the bulk- just over 70 percent or $3,151,800 - is derived from local government aid and other state assistance.
In the general fund, the largest spending line items are for public works ($1,401,500) and police ($1,331,000).
Other significant line items include the clerk’s office ($446,800), city hall ($225,000), recreation ($192,000) and the city attorney ($113,000).
While only a portion of the levy is earmarked toward the general fund, the city has allocated the rest toward other components of the city budget.
The city also plans to put $680,000 of property tax funding into capital projects, $436,600 for the library, $304,200 for debt service, $200,000 for equipment replacement and $24,000 for the cemetery.
Capital projects set for 2026 include infrastructure work on Pattison Street and Third Avenue East, and continued improvements at City Hall.
The property tax funds set aside for this work will be supplemented by $130,000 from the city’s street maintenance fund, $64,000 in state of Minnesota Small City assistance, and a Community Development Block Grant of $75,000.
A grader, lawn mower, police squad car and airport refueler truck mark the major equipment replacement needs in 2026, although grants will fund 70 percent of the refueler truck purchase.
